December 18, 2007	Tuesday	Zilhaj 7, 1428

KARACHI, Dec 17: The shipbreaking activity at Gaddani is witnessing signs of recovery as 34 vessels, with 152,260 light displacement tonnage (LDT), have so far been brought here to be broken into ‘scrap’ this year, after having hit rock bottom in the last few years.

However, the industry sources said the smuggling of banned items such as moon shaped pipes, girders, angles, channels, pipes, shafts, and used ship chains were finding their way into the local market through Quetta-Chamman border and from customs due to large-scale mis-declaration which was hurting the shipbreaking activities at Gaddani.Despite the fact that local demand for steel products is rising, the shipbreaking activities have been slowing down since 1999, which was considered best year for the industry as 64 ships of 926,067 LDT were imported during the year.

Nevertheless, the construction industry witnessed massive activity during the last five years, but the demand for steel was being largely met through rampant smuggling from official channels (CARe) and Quetta-Chamman border where truck load of banned items under garb of re-meltable scrap, which attracts no duty, enter the major domestic markets.

Similarly, large number of trucks loaded with rejected steel pipes from Russia enter Pak-Iran border and make their way into the cities without any check at any stage.

Pakistan Ship Breakers’ Association (PSBA) chairman Azam Malik told Dawn that the industry had contributed Rs3.54bn in 1999 and Rs2.41bn in 2002 to the national exchequer. He urged upon the policymakers to ensure level-playing field to all stakeholders of the steel trade and should not allow any one to thrive at the cost of others.

He regretted that the shipbreaking was being neglected by the government, which is the biggest industry of Balochistan. “There is no gas and the industry has to use costly oxygen gas for cutting and scraping millions of tons of scrap. There is no potable water available and what to talk about health facilities and in case of any accident we have to rush the victim to Karachi,” he deplored.

Mr Malik said presently around 5,000 people were earning their livelihood at Gaddani which could be increased to 25,000 to 30,000 if the government starts paying attention to this industry.